Kentucky State Capitol BuildingPHOTO:"Kentucky State Capitol Front" by Seifler

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Kentucky Could Face $200 Million Budget Shortfall

By The Associated Press

FRANKFORT, KY - Kentucky taxpayers could face a budget shortfall of more than $200 million.

State economists issued their first planning estimates for the current fiscal year on Friday. The Consensus Forecasting Group chose the most pessimistic of the three options they were presented, citing the partisan rancor in Congress as making it difficult to predict federal tax policy.

The official estimate calls for the state to collect roughly $10.8 billion in taxes for the fiscal year that ends June 30, 2018. However, economists signaled Friday they expect the state to collect about $10.6 billion in taxes. The official estimate won't be finalized until December.

Kentucky finished the most recent fiscal year with a $138 million shortfall. Republican Gov. Matt Bevin has called for an overhaul of the state's tax code.

Bevin as called for " a overhaul of the tax code". That is politician speak for drastic tax increase. We haste the worst funded pension program in the nation. We are dead last. We owe as much as $40 billion. The fund will be bankrupt in 5 years. Yet, we continue to pretend we can somehow pay this down. We can't. Even if we cut spending to the bone and doubled the state income tax, we can't pay this off. We will eventually default. Sooner we do it, the less it will hurt.